Country A would have an absolute advantage compared to Country B in the production of corn if
A) corn can be produced at lower cost in terms of other goods than it could be in Country B.
B) Country A uses fewer resources to produce corn than Country B does.
C) the demand for corn is higher in Country A than in Country B.
D) corn sells for a higher price in Country A than in Country B.

Respuesta :

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others.  A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.  

Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.